Opting to refinance your mortgage means you can apply for a new mortgage with better terms than your existing mortgage. A refinance will typically require less paperwork and can close faster than a purchase transaction.
Refinance rates are always changing depending on current mortgage market conditions. Mortgage rates are influenced by a range of economic factors, like inflation and unemployment rates. Usually, higher inflation causes mortgage interest rates to rise. Then, as inflation rises, the dollar value decreases and investors lose interest in the secondary mortgage market. When the demand for mortgage-backed securities decreases, mortgage interest rates can get more expensive for customers.
If your refinancing journey hit a wall, don’t worry. It’s not uncommon for borrowers to need more than a few months to find a new loan, and taking a break can be better than getting burnt out. Starting the process over again gives you an excellent opportunity to reflect on your latest efforts, reevaluate your priorities, and improve your chances of success. Here are some tips for starting the next leg of your refinancing journey on the right foot.
If you’re determined to get a new mortgage, refinancing is a relatively convenient option—but it may not be the best one for you. If you’re willing to move and go house hunting again, selling your property could be more profitable in the long run. Read on for help with deciding which course of action you should pursue.
Applying for a home loan will always require an appraisal, whether you’re looking for a new house or refinancing. Lenders need to know the property’s true value before they’ll agree to invest a certain amount of money in your mortgage. Let’s go over the appraisal process, how you can prepare for success, and what to do if your appraisal is low.
You can never predict exactly what condition the economy will be in at any point in time. Good times can always get better, but sometimes the unexpected happens and things take a downward turn. No matter which direction the economy shifts in or how big that shift is, the mortgage market is sure to be impacted too.